The Pound Euro (GBP/EUR) exchange rate is edging higher above €1.17, extending gains for a second day.
PMI data revealed that business activity expanded as a solid pace in June. The data also revealed that input costs shot higher meaning that inflationary pressures are building.
All eyes will now be on the BoE as investors watch closely to see whether the improving economic picture and rising inflation will prompt the UK central bank to consider tightening monetary policy.
The Euro edged lower on Wednesday despite PMI data showing business activity surged to a 15 year high.
German IFO economic sentiment data will be in focus. Analysts expect moral to rise to 103.9 in June.